CORRECTED-ESM picks banks for seven-year bond sale

(Corrects to show previous bond sales were in 2013)

By John Geddie and Alex Chambers

LONDON, Feb 24 (IFR) - The European Stability Mechanism,
rated Aa1/AAA by Moody's/Fitch, is set to issue its first
benchmark bond of the year on Tuesday, said a lead manager hired
to sell the new seven-year issue.

The ESM announced on Monday it had hired Credit Agricole,
Goldman Sachs and SG CIB to manage the sale of a new seven-year
benchmark, its third debt issue since inception following five-
and 10-year bond sales in 2013.

The new issue, expected to mature in March 2021, is being
marketed to investors at mid-swaps plus 9bp area, equivalent to
a yield of just over 1.50%.
(Reporting by Alex Chambers and John Geddie, editing by Julian
Baker)